There is a famous passage in chapter six of James’ Principles of Psychology whose import, many believe, deals a devastating blow to the explanatory aspirations of panpsychism. In the present paper I take a close look at James’ argument, as well as at the claim that it underlies a powerful critique of panpsychism. Apart from the fact that the argument was never aimed at panpsychism as such, I show that it rests on highly problematic assumptions which, if followed to their (...) logical consequences, are just as inedible to contemporary critics of panpsychism as they are to its present-day supporters. Hence, a naïve employment of the argument, as a critique leveled by physicalists against panpsychism, is counterproductive and even self-defeating. After examining the metaphysical shortcomings undermining James’ position , I conclude with some reflections on what needs to be done in order to obtain a better perspective regarding the explanatory prospects of panpsychism as an alternative approach to mainstream physicalism in the study of conscious phenomena. (shrink)